1. Field of the Invention
This application relates to real estate automated valuation models and more particularly to a real estate valuation model with customizable neighborhood determination.
2. Description of the Related Art
Automated valuation models (AVM) have been developed to estimate property values. However, a typical AVM performs estimation based upon predetermined inflexible geographical data sets. This may not be especially useful for particular applications.
For example, the sales comparison approach of real estate valuation relies heavily on the definition of neighborhood: a geographic area from which relevant comparable sales to the subject can be identified. An incorrectly-defined neighborhood would either miss relevant comparable sales or include irrelevant comparables sales (or both) and lead to inaccurate valuation.
Traditional AVM models have implemented fixed geographical standards to define the area subject to automated valuation. AVM systems that accommodate a more tailored approach to property value estimation are needed.